The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1850 to set up, brew, and bottle a batch of the beer (Ordering cost). The annual cost to store the beer in inventory is $1.45 per bottle. The annual demand for the beer is 20,500 bottles and the brewery has the capacity to produce 33,000 bottles annually. Given that they operate 360 days, determine:

The daily production rate (p) =

The daily demand rate (d) =

The optimal order quantity=

Total annual inventory cost=

The number of production runs per year

The maximum inventory level

If the microbrewery has only enough storage space to hold a maximum of 2500 bottles of beer in inventory. Find the optimal order quantity for this scenario.

Find the total inventory cost based on 2500 maximum inventory.